Latest: Corruption and Money Laundering.

New Zealand police strike deal with Chinese corruption suspect.

New Zealand police said on Tuesday they had reached a deal with a Chinese-born businessman for him to pay a record NZ$42 million ($31.3 million) fine to settle legal action following an investigation with China into money laundering.

William Yan, a New Zealand citizen, is on China's most-wanted list of international fugitives, accused of embezzlement.

New Zealand courts seized his assets two years ago while police investigated whether they were the proceeds of money laundering in China.

The settlement announced on Tuesday means that Yan avoids any criminal or civil responsibility, New Zealand police said in a statement.

Detective Inspector Paul Hampton, manager of NZ Police's asset recovery and financial group crime, said the proceeds of the fine would be shared between the New Zealand and Chinese governments.

China's Foreign Ministry said Chinese and New Zealand police had worked closely on the case, but it did not say if China would seek Yan's extradition.

"Going forward, Chinese police will continue to work with New Zealand to advance relevant enforcement cooperation on the Yan case," the ministry said in an emailed statement.

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